President Donald Trump missed last week’s deadline set by House Speaker Paul Ryan for renegotiating the North American Free Trade Agreement (NAFTA). Ryan had set May 17 as the last day the Trump Administration could send a renegotiated NAFTA to Congress for ratification before November’s congressional elections. On Monday, May 22, Treasury Secretary Steve Mnuchin further indicated that negotiations could slide into 2019.
While President Trump has Trade Promotion Authority (or “Fast Track” authority), in order for Congress to consider any amendments to NAFTA it needs to have time to consider any new trade agreement and to enact any necessary enacting legislations. As a result of continued delay in finalizing a new NAFTA agreement, no changes are likely to be enacted by the current Congress.
Negotiators from the U.S., Canada, and Mexico have been meeting for over a year to consider how to modernize the 23-year-old trade agreement. An updated NAFTA will include provision to account for the digital economy, increase intellectual property protections, and improve environmental and workforce safeguards. However, provisions related to automotive manufacturing as well as political discourse in anticipation of the Mexican presidential and U.S. congressional elections this year continue to place stress on negotiations.
NAFTA renegotiation is an opportunity for the U.S. to continue modernizing its trade practices and ensuring long-term competitiveness and economic growth. NAFTA freight is critically important to the U.S. freight industry and all TIA members, not just those TIA members working directly in cross-border freight. TIA staff is closely monitoring all issues related to the renegotiation of NAFTA and other free trade agreements. For more information please contact Will Sehestedt at sehestedt@tianet.org or 703-299-5713.